Hybu Cig Cymru

Meat Promotion Wales

hybucig.cymru

meatpromotion.wales

Current Beef Market

& Challenges

James Ruggeri – Industry Development Executive

&

Rhys Llywelyn – Market Development Manager

Hybu Cig Cymru

Meat Promotion Wales

hybucig.cymru

meatpromotion.wales

Overview

➢ Domestic market trends;

➢ Consumer demand update;

➢ HCC beef marketing activities.

Hybu Cig Cymru

Meat Promotion Wales

hybucig.cymru

meatpromotion.wales

Current Market Prices w/e 9th Nov

318.6p/kg( -38.3p y-o-y )

300

310

320

330

340

350

360

370

380

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2017 2018 2019 5-year average

England and Wales deadweight average steer pricep/kg dw

Hybu Cig Cymru

Meat Promotion Wales

hybucig.cymru

meatpromotion.wales

Current Market PricesMonthly store cattle prices

(England & Wales auction markets)

£/h

ea

d c

ha

ng

e y

-o-y

Source: AHDB-100.00

-90.00

-80.00

-70.00

-60.00

-50.00

-40.00

-30.00

-20.00

-10.00

0.00

August September October

Hybu Cig Cymru

Meat Promotion Wales

hybucig.cymru

meatpromotion.wales

• Adult cattle slaughterings = 485,100 head (down 2.6%)

• Adult cattle average carcase weight up 7.9kg

Throughput (head) Carcase Weight (kg)

Heifers 585,000 (+4.0%) 325.6 (+4.4kg)

Steers 748,900 (-0.7%) 363.6 (+4.5kg)

Young Bulls 153,400 (-2.7%) 341.1 (+5.5kg)

All prime cattle 1,487,400 (+0.9%)

Source: Defra

Current UK Production Levels (prime cattle) Jan – Sept 19

Total beef production = 672,400 tonnes (up 1.6%)

Hybu Cig Cymru

Meat Promotion Wales

hybucig.cymru

meatpromotion.wales

UK Beef TradeImports from Ireland

down 8% y-o-y ( -11,800 tonnes )

Source: HMRC

Exports: 98,000 tonnes (+21%)

Imports: 181,650 tonnes (-15%)

Jan–Sept 2019 (% y-o-y change)

70,000

90,000

110,000

130,000

150,000

170,000

190,000

210,000

230,000

2015 2016 2017 2018 2019

UK beef imports (Jan - Sept)

Total

Ireland

tonnes

Hybu Cig Cymru

Meat Promotion Wales

hybucig.cymru

meatpromotion.wales

Processing Pressures

• Reports from industry have

indicated significant declines in the

hide market.

• Decline in the overall value of the

5th quarter.

Increased processing costs, such as;

➢ Labour costs,

➢ Energy, and

➢ Packaging costs.

Hybu Cig Cymru

Meat Promotion Wales

hybucig.cymru

meatpromotion.wales

EU Market Prices

225

250

275

300

325

350

375

400

Jan 1

7

Mar

17

May 1

7

Jul 17

Sep 1

7

Nov 1

7

Jan 1

8

Mar

18

May 1

8

Jul 18

Sep 1

8

Nov 1

8

Jan 1

9

Mar

19

May 1

9

Jul 19

Sep 1

9

EU weekly male cattle prices (deadweight)

EU R3 Young Bulls EU R3 Steers UK Steers Irish Steers Poland YBp/kg dw

Hybu Cig Cymru

Meat Promotion Wales

hybucig.cymru

meatpromotion.wales

UK Supply Forecast

Source: BCMS

• Total cattle under 30 months:

-75,000 head (-1.5%) y-o-y.

• GB calf registrations down by

49,000 head (-2%) in 2018.

• 18-30 month: bulk of prime

cattle throughput for next

6 months (-14,500 head y-o-y).

-20,000

-15,000

-10,000

-5,000

-

5,000

10,000

0-6mnths 6-12mnths 12-18mnths 18-24mnths 24-30mnths

ch

an

ge

y-o

-y (

he

ad

)

GB cattle population under 30 months (Oct 2019)

Dairy F Dairy M Beef F Beef M

Hybu Cig Cymru

Meat Promotion Wales

hybucig.cymru

meatpromotion.wales

Summary

Lower prime cattle

prices – following the

global trend.

Higher beef

production – due to

increased prime cattle

throughput.

Additional pressure

from increased costs in

the processing sector.

Consumer demand

Hybu Cig Cymru

Meat Promotion Waleshybucig.cymru

meatpromotion.wales

Cig Eidion yn y DU

Beef in the UK

Hybu Cig Cymru

Meat Promotion Waleshybucig.cymru

meatpromotion.wales

Marchnad Cig Eidion y DU / UK Beef Market

Trosolwg o fanwerthu cig eidion yn y D.U. / Overview of beef retail in the UK

Hybu Cig Cymru

Meat Promotion Waleshybucig.cymru

meatpromotion.wales

Beth a faint sy’n gwerthu / What and how much is sold

Gwerth a maint cynnyrch cig eidion yn y D.U. / Value and volume of beef produce in the UK

Hybu Cig Cymru

Meat Promotion Waleshybucig.cymru

meatpromotion.wales

Beth sy’n gyrru’r newid yng ngwerthiant cig eidion ym Mhrydain? / What drives the changes in beef sales in the UK?

Hybu Cig Cymru

Meat Promotion Waleshybucig.cymru

meatpromotion.wales

Crynodeb / Summary

– Gostyngiad mewn gwerthiant cig eidion ar y cyfan (£)

– Achosir hyn gan pa mor aml mae’ncael ei brynu a faint sy’n cael eibrynu.

– 86% o gartrefi yn y DU wedi prynucig eidion yn y 52 wythnosddiwethaf.

– Briwgig yw’r rhan helaethaf o werthiant cig eidion - 53% o’rpwysau a 37% o’r gwerth.

– General decline in beef sales (£)

– Caused by frequency of purchase and volume purchased.

– 86% of households in the UK have purchased beef in last 52 weeks.

– Mince accounts for most of beef sales - 53% of weight and 37% of volume.

Hybu Cig Cymru

Meat Promotion Waleshybucig.cymru

meatpromotion.wales

Beth sy’n achosi hyn? / What causes this?

• 64% o siopwyr yn dweud eubod yn gofidio am yr economioherwydd Brexit.

• 59% o siopwyr yn poeni am eu sefyllfa ariannol bersonol.

• 36% yn dweud eu bod yn fwygofalus gyda’u gwariant arfwyd.

• 64% of shoppers say that they’re concerned about the economy because of Brexit.

• 59% of shoppers are worried about their own personal financial situation.

• 36% say they’re more careful in terms of how much they spend on food.

Hybu Cig Cymru

Meat Promotion Waleshybucig.cymru

meatpromotion.wales

Strategaeth 2018/19 Strategy

5,345 total likesGrowth of 516% over period

864 total followersAccount launched during period

3,289 total followersGrowth of 20% over period

• Ers Ebrill 2018 mae ein strategaeth wedi symud i weithio drwy’r flwyddyn gyda ffocws ar y digidol er

mwyn cynyddu ymgysylltiad â’r brand a gwella mesur perfformiad.

• Since April 2018, our strategy has moved to working all year round with a focus on digital to increase

engagement with the brand and improve performance measurement.

• Mae canlyniadau’n dangos fod hyn wedi talu ar ei ganfed gyda chynnydd mewn ymgysylltiad â’r cwsmer a

hyrwyddo wedi’i dargedu drwy’r flwyddyn am yr un gyllideb.

• Results have shown that this has paid off with an increase in engagement with the consumer and targeted promotions all year round with the same budget.

Hybu Cig Cymru

Meat Promotion Waleshybucig.cymru

meatpromotion.wales

Gellir rhannu ymgyrch eleni mewn i bedair prif elfen:

Drwy’r Flwyddyn – Gweithgaredd sylfaenol (Ebrill 2019 - Mawrth 2020)

1. Ymgyrch 1 – Cwpan Rygbi’r Byd 2019 (Medi / Hydref)

2. Ymgyrch 2 – Cyfnod Nadolig 2019 (Tachwedd / Rhagfyr)

3. Ymgyrch 3 – Chwe Gwlad 2020 (Chwefror/ Mawrth)

This year’s campaign can be split into four main elements:

All Year Round - ongoing activity (April 2019 – March 2020)

1. Campaign 1 – Rugby World Cup 2019 (September / October)

2. Campaign 2 - Christmas period 2019 (November / December)

3. Campaign 3 – Six Nations 2020 (February / March)

Strategaeth 2018/19 Strategy

Hybu Cig Cymru

Meat Promotion Waleshybucig.cymru

meatpromotion.wales

Drwy’r Flwyddyn / All Year Round

• Drafftio a phostio dyddiol ar draws sianeli

cyfryngau cymdeithasol Cig Eidion Cymru i

gyd er mwyn sicrhau twf mewn

ymgysylltu, trafnidiaeth ar y wefan a

chynyddu proffil.

• PR a ffocws lledaenach arlein ar

ddiwrnodau themâu allweddol.

• Creu cyfres o ryseitiau fideo blasus

newydd i helpu i ddenu ymgysylltiad

digidol, wedi eu rhyddhau ar adegau

penodol.

• Partneriaethau a hysbysebu â thâl lle bo

cyfle i wneud hynny.

• Daily posts across Welsh Beef social media

channels to ensure increase in

engagement, traffic to the website and

increase profile.

• PR and wider online focus on key theme

days.

• Create a series of new recipe videos to

increase digital engagement, released on

specific dates.

• Paid partnerships and paid advertising

where appropriate.

Hybu Cig Cymru

Meat Promotion Waleshybucig.cymru

meatpromotion.wales

Rhan 1 (Medi / Hyd) / Part 1 (Sept / Oct)

WalesOnline

Partneriaeth yn cynnwys erthyglau yn hybu fideos ryseitiau Cig Eidion Cymru a

hysbysebu eang arlein a thraddodiadol.

Partnerships including articles promoting Welsh Beef recipe videos and online and

traditional advertising.

Golwg 360

Cyfres o hysbysebion yn ystod Cwpan y Byd (Arlein a Thraddodiadol – Cymraeg

yn unig)

Series of advertisements during Rugby World Cup (online and traditional –

Welsh only)

Hybu Cig Cymru

Meat Promotion Waleshybucig.cymru

meatpromotion.wales

Taste.Blas - hyrwyddo drwy gylchgrawn a

ddosberthir am ddim, dros fil o fannau drwy

Gymru.

- promotion in a magazine with free distribution,

over a thousand sites across Wales.

Hyrwyddo ar y cyfryngau cymdeithasol yn cynnwys cystadleuaeth iennill pêl rygbi Shane Williams a gwthio fideos o ryseitiau Cig EidionCymru.Social media promotions including a competition to win a Shane Williams signed ball and push Welsh Beef recipe videos.

Rhan 1 (Medi / Hyd) / Part 1 (Sept / Oct)

Hybu Cig Cymru

Meat Promotion Waleshybucig.cymru

meatpromotion.wales

• Lansio partneriaeth gyda’r Scarlets / Launch partnership with the Scarlets

➢ Partner Maeth Swyddogol – Cig Eidion Cymru PGI / Official Nutritional Partner – Welsh

Beef

➢ Parhau â’r cyswllt rhwng Cig Eidion Cymru a bywyd iach / Continue link between Welsh

Beef and healthy eating

• Defnydd o aelodau o garfan y Scarlets ar gyfer ymgyrchoedd yn hyrwyddo Cig Eidion Cymru /

Use of Scarlets team members for Welsh Beef campaigns

• Chwaraewyr yn ymddangos yn ein digwyddiadau / Players at our events

➢ Hysbysebu drwy’r tymor yn cynnwys yn ystod gemau / Advertising throughout the

season including during matches.

Rhan 2 (Tach / Rhag) / Part 2 (Nov / Dec)

Hybu Cig Cymru

Meat Promotion Waleshybucig.cymru

meatpromotion.wales

• Gan adeiladu ar y berthynas byddwn yn rhedeg ymgyrch yn arwain at y Nadolig yn

hyrwyddo Cig Eidion Cymru fel y cig i’w fwyta ddiwrnod ‘Dolig / Building on the

relationship, we’ll run a campaign in the run-up to Christmas promoting Welsh Beef as the

meat to eat on Christmas day.

• Gweithgaredd yn cynnwys / Activity includes:

➢ Fideo gyda chwaraewyr y Scarlets / Video with Scarlets player

➢ Fideos ryseitiau / Recipe videos

➢ Partneru gyda theitlau allweddol eg. Daily Post & Western Mail / Partnerships with key titles

➢ PR lledaenach gyda theitlau rhanbarthol / Wider PR with regional titles

➢ Cynnydd mewn gweithgaredd ar y cyfryngau cymdeithasol / Increase in activity on social media

Rhan 2 (Tach / Rhag) / Part 2 (Nov / Dec)

Hybu Cig Cymru

Meat Promotion Waleshybucig.cymru

meatpromotion.wales

• Bydd rhan ola’r ymgyrch yn adnewyddu’r sylw ar fudd

maethol Cig Eidion Cymru / The final part will look to

renew the focus on health benefits of Welsh Beef

• Bydd hyn yn clymu mewn gyda dechrau’r 6 Gwlad ac

yn gwthio’r neges o rol bwysig cig coch fel rhan o

ddeiet iach ar gyfer bywyd iach a llawn gweithgaredd

/ This will tie-in with the start of the 6 Nations and

focus on red meat as part of healthy, balanced diet

• Byddwn yn gwneud y mwyaf o’r cyswllt gyda’r

Scarlets drwy fideos / We will make the most of link

with Scarlets by using videos

Rhan 3 (Chwe / Maw) / Part 3 (Feb / March)

Hybu Cig Cymru

Meat Promotion Waleshybucig.cymru

meatpromotion.wales

• Byddwn hefyd yn gweithio gyda arbenigwyr yn y maes

maeth i ymladd negeseuon negyddol am fwyta cig coch /

We will also work with experts in nutrition to fight back

against negative red meat messages

• Yn olaf ry’n ni wedi comisynnu cyfres o 6 rhaglen gyda

Cardiff TV sy’n hybu aelodau o Glwb Cigyddion HCC yn Ne

Cymru. / Lastly, we have commissioned a series of 6

programmes with Cardiff TV to promote HCC Butchers’ Club

in South Wales.

Ffocws ar bwysigrwydd tarddiad Cig Eidion Cymru a phrynu’n lleol.Focus on importance of Welsh Beef origin and local sourcing.

Rhan 3 (Chwe / Maw) / Part 3 (Feb / March)

Hybu Cig Cymru

Meat Promotion Waleshybucig.cymru

meatpromotion.wales